UK alcohol-free beer specialist Big Drop has embarked on a round of crowdfunding to support its ambitions in the US.
The company, set up in 2016, is targeting a pot of £450,000 ($569,435) as it looks to grow overseas, including in Asia.
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The money raised via the Seeds crowdfund will be used to replicate in other markets Big Drop’s business model in the UK, where In Good Company produces its keg and canned products.
In the US, Illinois-based brewer Destihl contract brews the alcohol-free beer Big Drop markets in the country, where it sells products including its Paradiso Citra IPA, Pine Trail pale ale and Galactic stout.
Big Drop said unnamed US breweries had expressed interest in signing a licensing deal.
“Licence conversations with significant regional brewers are currently underway,” CEO and co-founder Rob Fink told Just Drinks.
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By GlobalData“In contract brewing the relationship is simply one of supplier and customer. A brewery brews beer for you and that is an end to it. With a licence agreement, the relationship is much closer and the owner of the licence is responsible not only for brewing the beer but also other parts of the value chain and P&L, which could include some or all of marketing, sales, logistics, finance etc.”
Big Drop sells its alcohol-free beers in 20 countries including Australia, Canada and select markets in Europe.
The company has agreed a licensing deal with unnamed brewer in Singapore, a deal it hopes will act as an “export hub” for South East Asia.
“We hope to be brewing in Singapore by July with a large multinational hospitality and manufacturing company. More details to follow,” Fink said.
A similar contract has been signed in Australia, he added. “This is in the early stages but the license has been awarded to an online drinks retailer which will be contract brewing the beer in Australia,” Fink said.
Should Big Drop achieve its crowdfunding target, it would mean the company has raised more than £10m since it was set up.
Fink, the firm’s largest shareholder, said the fresh round of funding would also be used to support efforts to gain more draught listings in the UK on-premise.
Asked what Big Drop’s sales and profits were in 2023 – and for 2024 forecasts – he added: “We are forecasting international volume value of £3m in 2024.”
